Originally Posted by
jaygreenfield
I'm 65, How do I start withdrawing my IRA funds. Do i have to be retired.
You can withdraw as much (or as little) of your IRA funds as you like. You do not have to be retired. The only catch is that if this is a Roth IRA it must be at least 5 years old to enjoy distributions tax-free. If you call the IRA administrator (the company where you have the IRA accoun) they can set up a one-time withdrawal for you, or if you prefer a regularly scheduled distribution (monthly, or quarterly, or whatever you want).
Originally Posted by
jaygreenfield
How much would I have to pay in taxes at age sixty five if I cash out my 401k ?
The amount of the IRA or 401(k) distribution is considered to be ordinary income (unless it's a Roth plan), and so the taxes owed depends on your tax bracket. Of course the more you take out the higher your income becomes, so you may be pushed into a higher tax bracket than you are used to. You asked whether you need to be retired in your previous question - rules vary with plans, but to cash out a 401(k) most plans require that you are no longer an active employee. Check with the 401(k) plan administrator to see what the rules are for your particular plan.
